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HomeMy WebLinkAbout10.24.23 CITY OF ST. JOSEPH www.cityofstjoseph.com 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 St. Joseph City Council Work Session October 24, 2023 5:00 PM 1. Verkada Camera System Presentation 2. 2024 Budget a. Public Safety Aid b. Audit Firms 3. Refuse Hauler Contract 4. Stormwater and Street Light Utility Fees 5. Development Agreement/Right Turn Lane Discussion 6. Trail and Sidewalk Priorities for Grants 7. Sidewalk Plowing Routes 8. Facility Reservation Fees 9. Adjourn STAFF MEMO Prepared by: Lori Bartlett Meeting Date: 10/24/2023 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 2 Reviewed by: Item: 2024 Budget Discussion ACTION REQUESTED Provide direction on the final 2024 governmental fund budget and capital requests. REFERENCE AND BACKGROUND City Council adopted the preliminary 2024 budget and levy in September with the option to reduce the levy and budget before final adoption in December. Staff recommended setting up a workshop to go through a couple items that may impact the final budget. As a reminder, the final levy cannot be higher than the adopted preliminary levy. Council reviewed capital projects, dues and memberships, staffing request and the debt management study leading up to the preliminary budget adoption. Council did not have an opportunity to review the entire budget impact of the previous meeting discussions in one summary document. The workshop will provide a deeper review of the overall budget. Summary Levies (Stearns County provided the updated market values and tax rate 10/2/23) Note: $60,000 levy change = 1% tax rate change NTC inc. 9.32% 2023 Levy 2023 Tax Rate 2024 Levy 2024 Tax Rate Urban $3,305,081 59.74% $3,839,864 63.49% Rural Resident $100,956 21.31% $116,928 22.64% Rural Commercial $322,394 48.28% $390,382 54.87% Total Levies $3,728,431 $4,347,174 St. Joseph Total Tax Rate 2023 Levy 2023 Tax Rate 2024 Levy 2024 Tax Rate City of St. Joseph- Urban $3,305,081 59.74% $3,839,864 63.49% Stearns County $90,655,922 42.95% $92,912,235 39.88% ISD 742 $32,830,557 22.70% $34,023,207 22.59% Other Tax Districts $1,497,311 1.26% $2,002,279 1.26% Total Tax Rate 126.65% $4,347,174 127.22% Area cities tax rates with city, county and school district tax rates. Items to discuss: 1. LGA a. Increase $250,457 to $1,488,601 b. $200,000 in Fund 110 debt relief (goal amount), only $10,000 in 2023 c. Large expense out of Fund 110 in 2024: Pickleball Courts $170,000 d. Balance 9/30/23 $171,232 2. ARPA Federal Grant a. Must be spent by 12/31/2024 b. Unencumbered to spend $188,275 c. Can be used for almost any governmental function 3. Public Safety Aid a. Will receive $312,921 on 12/26/23 b. No expiration date to spend c. Eligible and ineligible uses attached d. No plans in budget for how to spend 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% St. Joseph Sauk Rapids Sartell St. Cloud Waite Park Average 126.0% 114.8%112.2%116.3% 154.7% 124.8% Preliminary 2024 Area City Tax Rate Comparison Includes County, School District, City Levies 4. Memberships and Dues (see summary reviewed over the summer) a. Any memberships do not want to budget for? (all included in prelim budget) 1. Stearns County Municipal League - $40 2. Central MN Granite Table - $3,000 estimated 3. Greater St. Cloud Development Corps - $5,000 4. Whitney Senior Center subsidy $40/person-30 budgeted 5. Staffing a. DDA implementation on 1/1/2024; all employees at least 3% increase b. Unions settled through 12/31/2025 – 2024 benefits included in budget c. Employee Sick & Safety Leave (ESSL) – required by State, implement 1/1/2024 i. All employees eligible ii. Added as a new benefit (does not replace current sick leave) iii. Budgeting 80 hours of earned ESSL on 1/1/24, no carry over, no payout d. Staff changes in 2024 budget: i. Administration 1. Planning Intern (was in 2023 budget) - $900 increase in 2024 2. Recreation Coordinator (part-time) - $25,500 impact in 2024 ii. Police 1. Deputy Chief budgeted as promotion with backfill promotion to Sergeant and removing float Patrol Officer - $9,500 impact 2024 2. Lead Records Technician budgeted as a promotion with no backfill of a Police Clerk position - $2,000 impact in 2024 iii. Public Works 1. Utility Worker budgeted to add a 2nd Utility Worker as a promotion w/full-time Maintenance Worker backfill a. Utility Worker promotion: $4,500 impact in 2024 – moves 75% wages/benefits from General fund to Enterprise funds b. Maintenance Worker addition: $96,600 impact in 2024 – 90% General fund, 10% Enterprise funds ClearGov online budget portal will go live before the October workshop. The link is below. https://city-saint-joseph-mn-budget-book.cleargov.com/13146 BUDGET IMPACT To be determined STAFF RECOMMENDED ACTION Discussion with staff regarding budget options. SUPPORTING DATA/ATTACHMENTS Please bring in your 2024 budget binders to reference during the discussion. Have list of Memberships available Summary Net Tax Capacity (Urban and Rural) Public Safety Aid – LMC Handout City of St. Joseph, Minnesota 2024 Net Tax Capacity - Urban Properties Preliminary as of October 9, 2023 Net Tax Capacity 5,532,803 6,048,448 (Stearns County Estimate) 2023 2024 2024 Levy Limit n/a 16.58% 9.32% TAGS 8402,8403 TAGS 8402,8403 T Mill Rate Levy Levy Change General Fund Levy 1,966,731 35.5467% 2,127,034 35.1666%-0.380% Retirement Reserve - 0.0000% 14,590 0.2412%0.241% Fire Fund 241,685 4.3682% 244,550 4.0432%-0.325% Country Manor's Abate - EDA 27,150 0.4907% 31,000 0.5125%0.022% Trobec's Abate- EDA - 0.0000% 104,094 1.7210%1.721% EDA Levy 93,650 1.6926% 90,976 1.5041%-0.189% Park Dedication Fund 35,000 0.6326% 50,000 0.8267%0.194% General Equip Fund 111,825 2.0211% 129,120 2.1348%0.114% sales tax abatement (480,000) -8.6755%(445,000) -7.3573% 1.318% Bond 2016 150,000 2.7111% 185,000 3.0586%0.348% Bond 2017 22,000 0.3976% - 0.0000%-0.398% Bond 2018 55,000 0.9941% - 0.0000%-0.994% Bond 2019 115,000 2.0785% 70,000 1.1573%-0.921% Bond 2020 258,500 4.6721% 320,500 5.2989%0.627% Bond 2021 185,000 3.3437% 125,000 2.0666%-1.277% Bond 2022 523,540 9.4625% 538,000 8.8948%-0.568% Bond 2023 - 0.0000% 255,000 4.2160%4.216% 3,305,081 3,839,864 2.351% 3,728,431 59.7361%4,347,174 63.4851%debt levy w/OAA Properties w/OAA Properties Operational Levy % change 23 to 24 12.73%Urban Mill Rate Chg 3.749% Operational Levy $ change 23 to 24 315,323$ urban levy change 534,783$ Debt Levy % change 23 to 24 26.47%levy % change 16.18% Debt Levy $ change 23 to 24 219,460$ Overall Levy Change 618,743 16.595% 2024 Net Tax 2024 Tax Impact Analysis 2023 NTC 2023 Tax Capacity,22 law Impact 150,000 Homestead 1263 754.47 1,263 801.82 Increase in taxes 6.28%47.35 200,000 Homestead 1808 1,080.03 1,808 1,147.81 Increase in taxes 6.28%67.78 250,000 Homestead 2353 1,405.59 2,353 1,493.80 Increase in taxes 6.28%88.21 500,000 Business 9,250 5,525.59 9,250 5,872.37 Increase in taxes 6.28%346.78 1,000,000 Business 19,250 11,499.20 19,250 12,220.88 Increase in taxes 6.28%721.68 $1 M 20 Unit Apt.12,500 7,467.01 12,500 7,935.64 Increase in taxes 6.28%468.63 60,000$ Estimated Property Tax Impact of the 2024 Urban Levy Budget Preliminary 2024 Tax Capacity rate change by 1% Adopted 2023 City of St. Joseph, Minnesota 2024 Net Tax Capacity - Rural Properties Preliminary as of October 9, 2023 Net Tax Capacity 473,796 516,360 667,718 711,430 (Stearns County Est.) 2023 8.98%2024 2023 6.55%2024 2024 Levy Limit n/a rural rural comm/ind comm/ind TAG 8404,8406 TAG 8404,8406 TAG 8405,8407 TAG 8405,8407 Rural Residential Levy Rural Residential Levy OAA Comm/Ind Levy OAA Comm/Ind Levy General Fund Levy 100,956 21.3079% 116,928 22.6446% 322,394 48.2830% 390,382 54.8729% 100,956 116,928 322,394 390,382 423,350 21.3079% 507,310 22.6446% 48.283% 54.873% increase 22 to 23 83,960 67,988 15,972 21.09%6.59% 15.82% 1.34% 2023 Net Tax 2023 Tax 2024 Net Tax 2024 Tax 2023 Net Tax 2023 Tax 2024 Net Tax 2024 Tax Impact Analysis Capacity Impact Capacity Impact Capacity Impact Capacity Impact 150,000 Homestead 1,263 269.12 1,263 286.00 1,263 609.81 1,263 693.04 Increase in taxes 1.34% 16.88 6.59% 83.23 200,000 Homestead 1,808 385.25 1,808 409.41 1,808 872.96 1,808 992.10 Increase in taxes 1.34% 24.17 6.59% 119.15 250,000 Homestead 2,353 501.37 2,353 532.83 2,353 1,136.10 2,353 1,291.16 Increase in taxes 1.34% 31.45 6.59% 155.06 Estimated Property Tax Impact of the 2024 Rural Levy Budget Adopted 2023Adopted 2023 Preliminary 2024 Preliminary 2024 10/19/23, 2:13 PM Focus on New Laws: Public Safety Aid - League of Minnesota Cities https://www.lmc.org/news-publications/news/all/fonl-public-safety-aid/1/4 Focus on New Laws: Public Safety Aid August 7, 2023 One-time aid for cities for a public safety purpose will be sent out on Dec. 26, 2023. The 2023 omnibus tax bill included $210 million in one-time public safety aid that will be distributed on Dec. 26, 2023, to cities across the state. Unlike local government aid, this aid cannot be used for general purposes, but instead must be used to “provide public safety.” Eligible and ineligible uses of the aid The authorizing language in the law provides categories of eligible spending, but the list is not exhaustive. It is also important to note that while legislators expected most of these funds to be used for police and fire expenses, it was intentionally written in a broad way that would allow for other uses as well. The allowable uses named in the new law include: Community violence prevention. Community intervention programs. Community engagement. Mental health crisis responses. Victim services. Training programs. First responder wellness. Equipment related to fire, rescue, and emergency services. Other personnel or equipment costs. The law also specifically calls out certain uses that are not eligible. Ineligible uses include: Employer contribution to the Public Employees Retirement Association Police and Fire Plan if the local unit received police state aid in 2022. Any costs associated with alleged wrongdoing or misconduct. Purchase of an armored or tactical vehicle or substantially similar vehicle. Purchase of tear gas, chemical munitions, or substantially similar items. Costs of construction, reconstruction, remodeling, expansion, or improvement of a police station, including related facilities. “Related facilities” includes access roads, lighting, sidewalks, and utility components on or adjacent to the property on which the police station is located that are necessary for access to and use of the building. 10/19/23, 2:13 PM Focus on New Laws: Public Safety Aid - League of Minnesota Cities https://www.lmc.org/news-publications/news/all/fonl-public-safety-aid/2/4 Considerations for cities Even with these categories of eligible and ineligible uses, there are many areas of spending that cities may have eligibility questions about. Unlike federal money from the American Rescue Plan Act or Coronavirus Aid, Relief, and Economic Security Act, its unlikely additional guidance will be provided to further clarify how these funds can and cannot be used. Cities will have to consult with their attorneys and use their best judgment to determine whether a use that is not clearly defined as eligible or ineligible is allowable. However, any use must be to provide public safety. And like with any state funds, their use must be closely tracked and documented in order to respond to any future inquiries or evaluations of this program. Frequently asked questions about the public safety aid No, cities do not have to apply for the funds. The funds will be distributed on Dec. 26, 2023. A PDF of the estimated public safety aid for cities and eligible towns can be viewed via the Minnesota Legislatureʼs website. The Minnesota Department of Revenue must certify the aid amount to be paid by Sept. 1, 2023. Will my city have to apply to the state in order to claim the public safety aid funds?+ When will we receive the public safety aid funds?+ How much public safety aid money will my city receive? When will we know the cer tiable amount? + If my city does not pay for a police or re 10/19/23, 2:13 PM Focus on New Laws: Public Safety Aid - League of Minnesota Cities https://www.lmc.org/news-publications/news/all/fonl-public-safety-aid/3/4 Yes, as long as the funds are used to provide public safety. The Legislature intentionally allowed uses broadly so that cities could use them for expenses other than police and fire. Yes, that is an eligible use of the public safety aid. There is not a spend-by date requirement in the law. However, the funds must be used to provide public safety and cannot act as an ongoing reserve. There are no specific reporting requirements in the law. However, as with all public expenditures, cities must carefully document how the public safety aid funds are spent and be ready to provide that information if asked. department can we still use these public safety aid funds? + My city contracts with our county to provide public safety services, can these funds be used to pay the county for those services? + By what date does my city have to spend these funds?+ What are the repor ting requirements for these funds?+ What should my city do if it’s unclear whether a specic expenditure qualies as an eligible or + 10/19/23, 2:13 PM Focus on New Laws: Public Safety Aid - League of Minnesota Cities https://www.lmc.org/news-publications/news/all/fonl-public-safety-aid/4/4 If cities are considering a use that does not clearly fall within an eligible or ineligible use, they should consult with their attorney. No, a reimbursement for expenses made prior to receiving the funds would not qualify as an eligible use of this public safety aid. The Legislature appropriated $210 million to cities for public safety aid. That $210 million was divided on a per capita basis. Read more news articles Your LMC Resource Nathan Jesson Intergovernmental Relations Representative (651) 281-1262 njesson@lmc.org ineligible use of the public safety aid? Can these funds be used to reimburse the city for expenses purchased prior to Dec. 26, 2023?+ How does the formula work that determines how much aid each city receives?+ STAFF MEMO Prepared by: David Murphy Meeting Date: 10/24/2023 ☐Consent Agenda Item ☒Regular Agenda Item Agenda Item # 4 Reviewed by: Item: Stormwater & Street Light Utility Fees ACTION REQUESTED Direction on implementation of the Utility Ordinance. REFERENCE AND BACKGROUND The annexation of residential and industrial property into the City in 2019 resulted in some unforeseen conditions that set up the current issue. The issue of the City-wide utility fees was apparently not discussed or debated during the annexation process. Sometime over the last 18 months, City staff has received complaints from industrial property owners that the newly annexed properties were not being similarly charged the City-wide utility charges. This was discussed by City staff starting sometime last year and was scheduled to be implemented this calendar year. Letters to the affected property owners were sent out on October 6th informing them of the upcoming charge for stormwater and street lighting. Since then Council and staff have received considerable comments from the affected owners. This issue is on the agenda for discussion with staff and direction from Council regarding the ordinance. Options include: •Leaving ordinance as is and implementing the fee •Amending the Ordinance to exempt rural residential properties in a defined area •Phasing the implementation of collecting the fee BUDGET IMPACT Indicated on the right. STAFF RECOMMENDED ACTION Discussion with staff regarding options SUPPORTING DATA/ATTACHMENTS City Ordinance 405 – Stormwater Utility City Ordinance 407 – Street Light Utility Ordinance Copy of letter sent to property owners on October 6, 2023 Joint Annexation Resolution Copy of letter sent to annexed properties on Feb. 1, 2019 Stormwater and Street Light Impact commercial stormwater $827.90 industrial stormwater $32,921.11 residential stormwater $10,080.00 $43,829.01 commercial street light $57.60 industrial street light $1,440.00 residential street light $3,456.00 $4,953.60 ST. JOSEPH TOWNSHIP RESOLUTION 2018-001 CITY OF ST. JOSEPH RESOLUTION 2018-057 JOINT RESOLUTION FOR DESIGNATION OF AN AREA FOR ORDERLY ANNEXATION AND FOR DESIGNATION OF AN AREA FOR IMMEDIATE ANNEXATION PURSUANT TO MINNESOTA STATUTES § 414.0325 WHEREAS, in 2010, St. Joseph Township ("Town") and the City of St. Joseph City") adopted a Joint Resolution for Orderly Annexation in 2006, which was amended in 2010 and amended again in 2015 ("Prior Agreement") which revoked prior orderly annexation agreements between the parties; WHEREAS, the parties desire to revoke the Prior Agreement and proceed with annexation as provided hereunder; WHEREAS, a joint notice of intent to designate the area for annexation with a map depicting the area was published on November 8, 2018; WHEREAS, the Board of Supervisors of St. Joseph Township passed this resolution on November 19, 2018; WHEREAS, the City Council of the City of St. Joseph (hereinafter referred to as the "City"), passed this resolution on November 19, 2018; and WHEREAS, the Town and the City agree to designate and request the immediate annexation of certain land located within St. Joseph Township to the City legally described in the attached Exhibit A and graphically depicted on attached Exhibit B (hereinafter the "Immediate Annexation Property"); and WHEREAS, the City and the Town are in agreement as to approving the designation for orderly annexation to the City of St. Joseph certain land legally described in the attached Exhibit C and graphically depicted on attached Exhibit D hereinafter the "Orderly Annexation Area" or"OAA") in accordance with the terms set forth herein; and WHEREAS, Minnesota Statutes § 414.0325 provides a procedure whereby the City of St. Joseph and St. Joseph Township may agree on a process of orderly annexation of a designated area; and WHEREAS, the City of St. Joseph and St. Joseph Township have agreed to all the terms and conditions for the annexation of the Property and the signatories hereto agree that no alteration of the designated area is appropriate and no consideration by the Chief Administrative Law Judge is necessary. The Chief Administrative Law Judge may review and comment, but shall within thirty (30) days, order the annexation in accordance with the terms of the resolution. 1 NOW, THEREFORE, BE IT RESOLVED,jointly by the City Council of the City of St. Joseph and the Township Board of St. Joseph Township as follows: Section I. Immediate Annexation Property. 1. Immediate Annexation Property. The following described land is subject to orderly annexation pursuant to Minnesota Statutes § 414.0325, and that the parties hereto designate the area for orderly annexation; and agree that the land be immediately annexed: See Exhibit A attached hereto and incorporated herein. A boundary map showing the Immediate Annexation Property described in Exhibit A is attached hereto as Exhibit B and incorporated herein. The Immediate Annexation Property abuts City limits as shown on Exhibit B and is about to become urban in nature. 2. Acreage/Population/Zoning. The Immediate Annexation Property consists of approximately 3,400 acres, the population in the area is 179. Upon annexation, the Property shall be zoned as follows: Commercial: See Exhibit E Industrial: See Exhibit F Rural Residential: all remaining parcels 3. Jurisdiction. The Town and the City, by submission of this joint resolution to the Municipal Boundary Adjustment Unit of the Office of Administrative Hearings, confers jurisdiction upon the Chief Administrative Law Judge so as to accomplish annexation of the Immediate Annexation Property in accordance with the terms of this resolution. 4. Municipal Reimbursement. The City and the Town agree pursuant to Minnesota Statutes § 414.036, reimbursement from the City to the Town shall occur for the taxes collected on land annexed into the City, according to the following schedules and thereafter all tax revenues will be the property of the City. All percentages are to be multiplied by the Township's share of property taxes from such annexed property in the year in which such property is annexed: a. Property Taxes. Commercial/industrial Property: 2019 - 100% to Township 2020 - 90%to Township 2021 - 50% to Township 2022 - 40% to Township 2023 - 30% to Township 2024 - 20% to Township If the City does not collect taxes from the annexed property in 2019, the City will have no obligation to reimburse the Township in 2019. In subsequent years the City will provide reimbursement to the Township in the percentages designated for each year as set forth in the above schedule. Rural Residential Property: 2019 - 60% to Township 2020 - 50% to Township 2021 - 40% to Township 2022 - 30% to Township 2023 - 20% to Township If the City does not collect taxes from the annexed property in 2019, the City will have no obligation to reimburse the Township in 2019. In subsequent years the City will provide reimbursement to the Township in the percentages designated for each year as set forth in the above schedule. b. Assessments and Debt. Pursuant to Minnesota Statutes § 414.036 with respect to any special assessment assigned by the Town to property annexed under this Agreement, and any portion of debt incurred by the Town prior to the annexation and attributable to the property annexed under this Agreement, the City shall forward to the Township any such assessment or debt revenue paid to the City by the property owner or by the County Auditor. The City shall pay the Township one-half of the amount due in each year within 30 days of the City's receipt of the first-half of the year tax settlement from the County (the June or July settlement) and shall pay the second half of such amount due within 30 days of the receipt of the second half of the year tax settlement (the November or December settlement) from the County. 5. Rural Taxing District. Within 30 days of the effective date of this Agreement, the City shall establish a rural/urban taxing district pursuant to Minn. Stat. 272.67 and shall include all Rural Residential properties (initially defined as non-commercial and non-industrial zoned properties) annexed to the City under Section I, paragraph 1 above, within the rural taxing district. The City shall establish a rural service district tax rate that will initially be set at a tax rate equal to the 2018 Town tax rate, but which will be subject to annual increases or decreases proportionate to the annual increase or decrease in the City's overall tax rate, with the City 's 2018 tax rate as the base against which future increases or decreases are initially measured. For example: The 2018 Tax Rates are as follows: City Tax Rate 61.4627 Twp Tax Rate 21.9232 For the purpose of this example, if the City's overall tax rate increases to 63A627, this would represent a 3.254% change (increase) in the City's overall tax rate from 2018 to 2019. The rural taxing district rate would change by the same percentage. Therefore, 3 the prior year's rural tax rate (the 2018 Township tax rate) of 21.9232 would be multiplied by the 1.0325 (1 plus the 3.254% change in the City's overall tax rate) which would increase the rural tax rate to 22.6366 for 2019. If the City's 2020 overall tax rate then decreased to 62.2533, this would represent a 1.906% change (decrease) in the City's overall tax rate from 2019 to 2020. The rural taxing district 2019 tax rate of 22.6366 would then be multiplied by .98094 (1 minus the 1.906% change in the City's overall tax rate) which would decrease the rural tax rate to 22.2051 for 2020. The only changes to the rural tax rate shall be those occurring as a result of the proportional increases or decreases in the City's overall tax rate pursuant the terms of this paragraph. Such Rural Residential properties placed in the rural taxing district shall remain in the rural taxing district until such time as: i. The property is developed commercially or industrially; or ii. Municipal sewer and/or water services are readily available to serve the property. Paving, repaving, or reconstruction of a street abutting a property shall not be deemed to be a sufficient improvement to cause unplatted or platted property to be transferred out of the rural taxing district. 6. Tax Rate Step Up. The tax rate for Commercial and industrial properties annexed pursuant to Section I, Paragraph 1 above shall be stepped up from the Town tax rate to the City tax rate by equal increments over a six-year period. 7. Review and Comment. The City and the Town agree that upon receipt of this resolution, passed and adopted by each party, the Chief Administrative Law Judge may review and comment, but shall within thirty (30) days, order the immediate annexation of the Immediate Annexation Property in accordance with the terms of this resolution. 8. Provision of Utilities to Annexed Properties. In the event the City provides municipal sewer service to any Rural Residential zoned properties annexed under the terms of this Agreement, the City shall not require any such property to connect to the municipal sewer system for a period of seven years from the date of the most recent septic certification provided that the system does not fail within that seven-year period. Such properties shall be required to connect to City water services immediately in accordance with State law. 9. Building Inspection. Upon annexation of the Orderly Annexation Property described on Exhibit A, all new building permits shall be issued and administered by the City. All Building permits already issued as of the effective date of this Agreement to any such Orderly Annexation Properties shall continue to be administered by the Township's building inspector until a certificate of occupancy is issued. The Township shall provide building permits and site plans for annexed properties to the City. 4 Section II. Orderly Annexation Property. 1. Orderly Annexation Property. The following described land is subject to orderly annexation pursuant to Minnesota Statutes § 414.0325, and that the parties hereto designate the area for orderly annexation in accordance with the terms herein; See Exhibit C the"OAA") A boundary map showing the OAA described in Exhibit C is attached hereto as Exhibit D and incorporated herein. All such land in the OAA shall remain in the Township until it is annexed pursuant to the terms of Section II, Paragraph 8 below. 2. Acreage. The OAA consists of approximately 2,100 acres and a population of approximately 13. 3. Jurisdiction. That St. Joseph Township and the City of St. Joseph, by submission of this joint resolution to the Municipal Boundary Adjustment Unit of the Office of Administrative Hearings, confers jurisdiction upon the Chief Administrative Law Judge so as to accomplish annexation of the OAA in accordance with the terms contained in this Section II. 4. Municipal Reimbursement. The City of St. Joseph and St. Joseph Township agree pursuant to Minnesota Statutes § 414.036, reimbursement from the City to the Town shall occur for the taxes collected on land annexed into the City, according to the following schedule and thereafter all tax revenues will be the property of the City. All percentages are to be multiplied by the Township's share of property taxes from such annexed property in the year in which such property is annexed: a. Property Taxes. First year the City collects property taxes from the annexed property: 60% to Township. Second year the City collects property taxes from the annexed property: 50% to Township. Third year the City collects property taxes from the annexed property: 40% to Township. Fourth year the City collects property taxes from the annexed property: 30% to Township. Fifth year the City collects property taxes from the annexed property: 20% to Township. 5 b. Assessments and Debt. Pursuant to Minnesota Statutes § 414.036 with respect to any special assessment assigned by the Township to the annexed property and any portion of debt incurred by the Town prior to the annexation and attributable to the property annexed under this Agreement, the City shall forward to the Township any such assessment or debt revenue paid to the City by the property owner or by the County Auditor. All such payments shall be made to the Township within 30 days of receipt of such funds by the City. The City shall pay the Township one-half of the amount due in each year within 30 days of the City's receipt of the first-half of the year tax settlement from the County (the June or July settlement) and shall pay the second half of such amount due within 30 days of the receipt of the second half of the year tax settlement (the November or December settlement) from the County. 5. Office of Administrative Hearings, Municipal Boundary Adjustments. Upon approval by the Town Board and the City Council, this Joint Resolution shall confer jurisdiction upon the State of Minnesota Office of Administrative Hearings, Municipal Boundary Adjustments (hereinafter referred to as the "MBA") or its successor pursuant to Minnesota Statutes. 6. No Alterations of Boundaries. The Town and City mutually agree and state that the MBA may review and comment, but that no alterations by the MBA of the stated boundaries of the area designated for orderly annexation is appropriate. Any alterations of boundaries may only be made upon the joint agreement of the Town and City. 7. Planning and Land Use Control Authority. The Town and City mutually agree and state that the Joint Planning Board established under the Prior Agreement will continue to exercise planning and land use control authority within the OAA pursuant to Minnesota Statutes section 414.0325, Subdivision 5. The City and Township establish this resolution as their joint powers agreement under Minnesota Statutes Section 462.371, Section 471.59 and Section 414.0325, Subd. 5 to conduct regional planning under the Municipal Planning Act in accordance with the terms of this Section II. The process for planning is as follows: 7.1 The Joint Planning board is an eight-member board, consisting of four members appointed by the Town and four members appointed by the City and has final authority on all land use matters in the OAA. 7.2 The City will act as the Zoning Administrator, reviewing and overseeing all relevant zoning related matters in the OAA. The City will review applications for sufficiency, determine the level of approval necessary for the application, collect application fees, and will provide recommendations to the Joint Planning Board for its consideration. The City shall provide copies of applications to the Town's designated land use official for review and comment. The City will set the public hearing for the Joint Planning Board by sending out property owner notifications 6 on joint City/Township letterhead. The City will send the notification to the designated legal publication site. The Town and the City will post the public hearing in their respective jurisdictions. The City will administer and enforce all provisions of the Land Use Regulations. 7.3 The land use controls for the orderly annexation area shall be as set forth in Section 9.15 Urban Expansion District of the Stearns County Land Use and Zoning Ordinance in effect as of the date of this Resolution, except as otherwise modified in Attachment 1 attached hereto and incorporated herein. The Joint Planning Board shall follow the procedural provisions of the City of St. Joseph Zoning Code. 7.4 The Joint Planning Board will utilize the City's building, fire, and electrical code inspection services in the orderly annexation area. 7.5 Except as otherwise specified in the Land Use Regulations, Stearns County regulations shall apply to the orderly annexation area. 7.6 No property within the OAA shall be rezoned prior to annexation. 7.7 No property within the OAA shall be subdivided in such a manner that will create more than 2 lots unless the property is first annexed to the City. 7.8 The Joint Planning Board shall be scheduled to meet bi-monthly on an as needed basis. The Town and the City shall establish fees for regular and special meetings of the Joint Planning Board. 7.9 The Joint Planning Board will serve as the board of Adjustment in the OAA area and shall hold the public hearings on all applications for conditional use/interim use permits, variances, text amendments to the Land Use Regulations, administrative subdivisions and administrative appeals. Except for text amendments, the Joint Planning Board will have final authority on all matters listed above except that any aggrieved person or persons shall have the right to appeal within thirty (30) days, after receipt of notice of the decision, to the Stearns County District Court. The Joint Planning Board shall serve as an advisory board and shall make recommendations on text amendments which shall be submitted to the Town and the City for final decision. Text amendments shall require the approval of both the Township and the City at a joint meeting. 7.10 The City will staff the Joint Planning Board meetings. The City will prepare agendas, take the minutes of the meetings, and handle the appropriate paper work associated with the meeting including notifying and recording the necessary permits associated with the action of the Joint Planning Board. 7.11 The City shall issue all building permits and site construction permits, conduct building inspections for each permit issued, and shall provide the Town with copies of permits and inspection reports for any permit issued therefore on a monthly basis, except that all Building permits already issued on the effective 7 date of this Agreement to any properties within the OAA shall continue to be administered by the Township's building inspector until a certificate of occupancy is issued. 7.12. The parties shall obtain liability coverage for the activities to be conducted by the Joint Planning Board. The cost of such coverage shall be split equally by the City and the Town. 8. Conditions for Orderly Annexation. The City and the Town mutually state and agree that properties in the OAA, or any portion thereof shall be annexed to the City by the MBA upon receipt of a resolution from the City requesting such annexation. The City may adopt such resolution only upon the occurrence of any one or more of the following, provided 30 days' notice of the City's intent to adopt such resolution has been sent to the Township: a. All of the property owners of a particular parcel submit a petition for annexation of that parcel or a portion thereof, or; b. The City has immediate ability to extend water and sewer services to the subject property and the property owner has a good faith intent to immediately plat the property for which annexation is sought. Platted lots existing at the time of the execution of this Agreement shall not be deemed to meet the "good faith intent to immediately plat the property" simply by virtue of the fact that they are platted at the time of execution of this Agreement. 9. Exclusivity. It is the intent of the parties that this Agreement sets forth the exclusive procedures under which property within the Town may be annexed from the Town to the City during the term of this Agreement. The City shall not annex any property from the Township except in conformity with the terms of this Agreement. The City shall not support an annexation proposed by a third party that is not consistent with the terms of this Orderly Annexation Agreement. 10. Review and Comment. The City and the Town mutually agree and state that this Joint Resolution and Agreement sets forth all the conditions for annexation of the areas designated and that no consideration by the MBA is necessary. At such time as the conditions for annexation of the areas or a portion thereof as described in this Agreement have been met, and upon receipt of a Resolution for Annexation from the City of St. Joseph, the MBA may review and comment, but shall, within 30 days, order the annexation in accordance with the terms of the Resolution. 11. Termination of Prior Agreements. Any prior agreements or joint resolutions existing between the parties pertaining to annexation of property from the Town to the City shall be considered terminated upon the effective date of this Joint Resolution. 12. Effective DatelApplicability. This Joint Resolution is effective on the date it is adopted by the City and the Town; whichever is the second to act on this resolution. Annexations occurring as provided in this Joint Resolution shall be effective upon the 8 issuance of the order by the MBA. The provisions of this Joint Resolution shall be binding unless otherwise modified by a joint resolution of both the City and Town. Adopted by affirmatiff vote of all the members of the St. Joseph Township Board of Supervisors this (?1t day of 1 ',,yrr 2018. ST. JOSEPH TOWNSHIP ATTEST: By: IlL Chairperson Ann Reischl, Township Clerk Board of Supervisor A pted y a irmative vote of the City Council of St. Joseph this 1j day of 2018. CITY OF ST. JOSEPH ATTEST: jzBy: ick Schulz, Mayor Weyr'ns, City A a ministrator 9 As you are aware, the City and Township of St. Joseph have been working on the annexation of aportion of St. Joseph Township, known as the 1996 Orderly Annexation Area (OAA). As ofJanuary 16, 2019 the annexation has been complete and is in the process of being recorded at the Stearns County Recorder’s Office. The City hosted two open house style meetings to gather input as toissues and concerns of the Township residents surrounding the annexation. The issues revolved around land use matters and taxation. The purpose of this newsletter is to provide asummary of information. Land Use Matters - The City of St. Joseph will serve as the Zoning Administrator for the entire OAA See attached map) regardless if your property was annexed under the Agreement or reserved for future annexation. The City will also provide building inspection services. The building permit process is similar to the process in St. Joseph Township and the same projects require permits to include plumbing, mechanical and all building. Contact the City Offices for all land use or building permits and the City staff will assist you with the process. Annexed property will come into the City with the same or similar zoning regulations. If your property was zoned as Urban Expansion (UE) itwill be rezoned to Rural Residential. The creation of the RR Zoning District included provision so that you may continue to use your property in the same fashion as you do today. The City and Township created a new zoning district and entitled it Rural Residential (RR). A copy of the Ordinance that regulates your property is available on the City website: www.cityofstjoseph.com. The information is located under the category on the top left entitled Resources. Once you have selected Resources you will see acategory named Orderly Annexation Agreement. The bottom ofthe page has links tothe applicable Ordinances, the original 2010 Orderly Annexation Agreement, the 2018 Orderly Annexation Agreement, and acopy of this letter. St. Joseph Code of Ordinances RR Rural Residential includes Rural Quality ofLife Provisions which exempt property owners from certain regulations in the urban/city area. Those items include: Animals: flexibility in the license and regulation of animals; Hunting/Firearms: allowance to continue without apermit provided property owners follow State and Federal laws and monitoring by the Police Chief as properties develop Burning: Burning isallowed; however must be approved and permitted by DNR Rental License: no restriction on renting dwelling or portion thereof provided a City license is secured Wood Burning Stoves – allowed Noise – exempt from City Ordinance 1002 provided it does not become apublic nuisance or endangerment to others. Annexed property currently zoned Commercial will be rezoned to B2 Highway Business (Ordinance 502.04) and Industrial Property will be rezoned to Light Industrial (Ordinance 502.62). Copies of these Ordinances can be found on the website as well and are similar to the Stearns County Ordinance. The rezoning hearing will be held on February 11, 2019 at approximately 6:15 PM. The City is required to mail to notices to all impacted property owners as well as those within 350 feet of the rezoning area. The only property annexed are those that are being rezoned. The property in the hatched area remains in St. Joseph Township. The map in the hearing notice will identify those property owners impacted. Taxation – A second issue raised was taxation. The concern was that many areas would not receive City services, yet they would be taxed at the City rate. As aresult of those discussions, the annexation agreement includes the creation of aRural Taxing District which continues until the property is developed industrially or commercially or water/sewer are readily available. The Rural Tax rate will be adjusted annually proportionate to any increase or decrease in the City Tax rate. Property zoned RR will not receive City services and as such are not required to be on the City refuse program and are not eligible to participate in the annual spring and fall cleanup. Compost permits will remain at the rural rate of $ 60.00. In addition, the City has opted to keep the contract with Astech for snow removal services so that you continue to have the same level of service. Commercial and Industrially zoned properties will be phased into the City tax rate by equal increments over asix year period. If you have additional questions feel free to contact Judy Weyrens at 320-363-7201 or by email at jweyrens@cityofjoseph.com. REMINDER – Receipt ofthis letter does not mean that your property has been annexed tothe City ofSt. Joseph. Notices are mailed to property owners within 350 feet of the rezoning. If your property is located on the map in the colored areas your property was annexed. Property located in the cross hatch indicates your property is not annexed. This property remains in St. Joseph Township and land use matters are handled by the City of St. Joseph as the Building and Zoning Administrator and the Joint Planning Board will hear public hearing Mfhfoe 3129!Boofybujpo Djuz!pg!Tu!Kptfqi qbsdfmt Qspqptfe!\[pojoh!Ejtusjdu Ijhixbz!Cvtjoftt Mjhiu!Joevtusjbm Svsbm!Sftjefoujbm Gvuvsf!Boofybujpo 13-1115-1112-111UpxotijqPsefsmz!Boofybujpo!Bsfb.Sfnbjot!jo!Tu/!Kptfqi Gffu STAFF MEMO Prepared by: David Murphy Meeting Date: 10/24/2023 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 5 Reviewed by: Item: Development Agreement/Right Turn Lane ACTION REQUESTED Direction regarding improvements to be required in Development Agreement. REFERENCE AND BACKGROUND Staff is working with the City Attorney and property owner to finalize the development agreement (DA) for the Wedding Event Center. One of the issues requiring attention in the DA is securing the financial responsibility for the construction of the right turn lane into the property at the time Jake Rd is rebuilt to collector street specifications. Robert Vose, the attorney advising us on the DA has provided the language in the attached email to be added to the DA that specifies the property owner’s responsibility at the time Jade Road is rebuilt. The question that has come up is the City’s commitment to requiring the right turn lane. Staff will provide the Council with some of the background discussion regarding requiring the right turn lane. Staff will then look to Council for direction on proceeding with the DA. BUDGET IMPACT Unknown at this time. STAFF RECOMMENDED ACTION Discussion with staff regarding the requirement to add a right turn lane in the future and potential options. SUPPORTING DATA/ATTACHMENTS Draft Development Agreement (confidential yet at this point). E-mail from Attorney Robert Vose regarding binding language to be added to DA. (Attorney/client privilege at this point). Aerial map of the area. 109 5 1 1 0 0 1092 109 2 109 3 1094 10 9 6 109 7 10 9 8 1 0 9 9 11 0 1 110 1 11 0 1 11 0 2 106 0 106 0 106 5 10 7 0 10 7 5 10 7 5 10 8 0 10 8 5 10 9 0 10 9 5 10 9 5 1095 1 0 9 5 1 1 0 0 1 1 0 0 1100 11 0 0 1105 1 1 0 5 11 0 5 1 1 0 5 11 1 0 1 1 1 0 1 1 1 5 1 1 1 5 1 1 2 0 1 1 2 0 1 1 2 5 1125 11 2 5 113 0 11 3 0 1130 1 1 3 5 1140 11 4 5 1150 10 6 1 106 1 1062 106 2 10 6 2 10 6 3 10 6 4 106 6 106 7 10 6 8 10 6 9 10 7 1 10 7 2 10 7 2 10 7 3 10 7 3 10 7 4 10 7 4 10 7 6 10 7 6 10 7 7 10 7 7 10 7 8 10 7 9 10 8 1 10 8 2 10 8 3 10 8 4 10 8 6 10 8 7 10 8 8 10 8 9 10 9 1 10 9 2 1 0 9 2 10 9 3 1 0 9 3 1093 1 0 9 3 10 9 4 10 9 4 1094 1 0 9 4 10 9 6 1 0 9 6 1096 1 0 9 6 10 9 7 1 0 9 7 1097 10 9 7 10 9 8 1 0 9 8 1098 10 9 8 10 9 9 1 0 9 9 1099 10 9 9 1 1 0 1 1 1 0 1 1101 11 0 1 1 1 0 2 1 1 0 2 1102 11 0 2 1103 11 0 3 1 1 0 3 1 1 0 3 1104 11 0 4 11 0 4 1 1 0 4 1106 11 0 6 11 0 6 1 1 0 6 1107 11 0 7 11 0 7 1 1 0 7 1108 11 0 8 11 0 8 1 1 0 8 11 0 9 1 1 0 9 11 1 1 1 1 1 1 11 1 2 1 1 1 2 11 1 3 1 1 1 3 11 1 4 1 1 1 4 1 1 1 6 1 1 1 6 1 1 1 7 1 1 1 7 1 1 1 8 1 1 1 8 1119 1 1 1 9 1 1 2 1 1 1 2 1 1 1 2 2 1 1 2 2 1 1 2 3 11 2 4 1 1 2 6 1126 1 1 2 7 11 2 7 1127 11 2 8 1 1 2 8 1128 112 9 1 1 2 9 1129 11 3 1 11 3 2 1133 1134 1 1 3 6 1137 1138 1139 11 4 1 1142 1143 1144 114 6 114 7 114 8 114 9 1151 1152 1152 WE T WE T WE T WE T WET WET WET WET WET WE T WET S S SN-6 INV=1061.54 (W) INV=1061.43 (N) INV=1061.53 (S) TC=1070.97 DEPTH=9.54' SN-7 INV=1060.45 (S) INV=1060.35 (N) TC=1066.12 DEPTH=5.77' SN-8 INV=1059.37 (S) TC=1064.90 DEPTH=6.96' JA D E R O A D S SN-5 INV=1062.11 (N) TC=1070.31 DEPTH=8.20' 208 LF 10" C900 PVC @ 0.28% 350 LF 10" C900 PVC @ 0.28% I I I I FINIS H E D F L O O R E L E V A T I O N ACTU A L = 1 0 9 5 ' ARC H . = 1 0 0 ' - 0 " OUTD O O R CERE M O N Y PATI O PATI O OUT D O O R CER E M O N Y 60'X10 0 'STOR A G E BUIL D I N G FFE= 1 0 7 5 PATI O PATI O PATI O 350 LF 10" C900 PVC @ 0.28% S 10' D/E & U/E 10' D/E & U/E Sa v e : 8 / 3 / 2 0 2 3 1 1 : 5 4 A M b c o f f m a n P l o t : 8 / 3 / 2 0 2 3 2 : 1 5 P M X : \ P T \ S \ S T J O E \ c o m m o n \ G e n e r a l N u m b e r s \ G 2 1 3 2 0 2 3 W e d d i n g E v e n t C t r D e v \ 5 - f i n a l - d s g n \ 5 1 - d r a w i n g s \ 1 0 - C i v i l \ c a d \ d w g \ E v e n t C e n t e r . d w g 0 feetscale 60 12060 30 FIGURE NO. 2 PROJECT NO. DATE: STJOE G188 06/28/2022 UTILITY LAYOUT EVENT CENTER ST. JOSEPH, MINNESOTA LEGEND ELEVATIONS ABOVE 1,130 BOOSTED WATER PRESSURE RECOMMENDED WETLAND Exhibit A